China News – China Tariffs On Canada : China escalated its trade war strategy on Saturday, March 8, slapping 100% tariffs on Canadian canola oil, meal, and peas in a calculated move to fracture North American solidarity against its exports, The New York Times reported.
- China imposes 100% tariffs on Canadian canola to disrupt U.S.-led trade bloc.
- Beijing aims to deter Canada and Mexico from backing Trump’s tariffs on Chinese goods.
- State media warns of broader retaliation as North American unity falters.
China Targets Canada to Deter U.S. Allies in Tariff Standoff
The measure, effective March 20, follows Canada’s October tariffs on Chinese electric vehicles and steel—aligned with U.S. demands—and seeks to pressure Ottawa and Mexico City into distancing themselves from President Donald Trump’s aggressive tariff regime. Beijing’s state media doubled down, signaling a broader intent to unravel the U.S.-led trade front as tensions boil over.
A Strategic Strike on Canada
The Chinese commerce ministry unveiled the canola tariffs—joined by 25% duties on Canadian pork and seafood—hours after Trump’s Friday threat of reciprocal tariffs on Canada’s dairy and lumber.
The New York Times cited analysts who see Beijing targeting Canada’s $3 billion canola trade (40% of its exports go to China, per 2023 data) as a warning shot to U.S. allies. “China wants Canada and Mexico to think twice about dancing to Trump’s tune,” said trade expert Edward Alden, noting Beijing’s earlier 15% tariffs on U.S. farm goods like chicken and corn, effective March 10, set a precedent. State-run Global Times underscored this, declaring, “North American unity is a myth we’ll expose.”
The move exploits Canada’s rift with Trump, who doubled U.S. tariffs on Chinese goods to 20% on March 4 and offered only a one-month auto import reprieve.
Ontario Premier Doug Ford’s cancellation of a $100M Starlink deal and threats to cut U.S. power exports—announced March 5—gave China an opening, with Foreign Minister Wang Yi praising Canada’s “independent streak” Friday. Mexico, set to unveil its tariff response Sunday, faces similar pressure as China dangles trade incentives.
Fracturing the North American Front
Beijing’s canola salvo aims to deter Canada and Mexico from fully endorsing Trump’s push for a unified tariff wall against Chinese steel, EVs, and tech—sectors hit by U.S. duties since February 5, per Trump’s economic security memo.
The strategy builds on China’s October 2024 tariffs on Canadian EVs (up to 37%) and steel (25%), retaliating against Ottawa’s alignment with U.S. restrictions on Chinese imports under the USMCA framework. X posts reflected Beijing’s confidence, with @HuXijin_GT noting, “Canada’s pain is America’s lesson—divide and conquer works.”
Prime Minister Justin Trudeau called China’s latest tariffs “unacceptable,” vowing $155 billion in U.S. retaliation, yet avoided pledging deeper U.S. coordination, signaling cracks Trump’s tariffs have widened.
Mexico’s silence—despite Trump’s March 6 exemption for automakers—hints at wavering resolve, with analysts like Shannon O’Neil telling NPR that China’s “divide-and-rule” play could succeed if allies balk at Trump’s brinkmanship. State media warned Saturday of “more to come,” eyeing Canada’s $500 million pork trade next.
Global Ripples and Market Jitters
China’s gambit comes as its imports shrink—down 24% for rare earths in early 2025, per Reuters—under U.S. tariff pressure, pushing Beijing to flex muscle elsewhere.
Canada’s TSX fell 2% Friday, with canola futures off 5%, while the Dow shed 300 points amid trade war fears. Trump dismissed China’s ploy on Truth Social, calling it “weak” and hinting at “big moves” Monday, possibly the 250% dairy tariffs he floated.
Allies like the EU, facing their own China trade talks, urged de-escalation, but Beijing’s state media framed the standoff as a test: “America’s bloc will crumble if its friends feel the sting.”
As Trump’s April 2 tariff deadline nears, China’s canola strike—layered atop its U.S. farm tariffs—tests North American cohesion. With Canada defiant and Mexico on edge, Beijing’s divide-and-conquer bid could reshape the trade war’s next chapter, one tariff at a time.
